Struggling Homeowners Find Relief With IFI's HOMR Program

As the housing crisis deepens, relief for homeowners is scarce. Investors Fiance, Inc has launched a breakthrough program, effectively allowing for substantial "principal reduction" - something UNHEARD of in the Financial Industry until now.
By: Investors Finance, Inc.
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Investors Finance Inc


Encinitas - California - US

Feb. 19, 2010 - PRLog -- Investors Finance, Inc. (IFI) a public stock consumer finance company since 1960 has released “HOMR™” to the financial industry. HOMR™ was created as a result of the nation’s current Housing crisis. IFI’s “HOMR™” program is targeted at “Homeowner Mortgage Retention”, and has evolved from a burning desire on the part of its founder to “Save the American Dream - One Home at a Time”! At a time when the Government and Financial Institutions are failing the American public, IFI is stepping up to the plate and providing a solution to many homeowners who are struggling financially, behind on their mortgage and hopelessly locked into a mortgage that has a dollar value greater than the value of their home. IFI evaluates the possibility of purchasing the “toxic asset” (non-performing loan held by the financial institution/bank/investor), establishing new terms (based upon the borrowers current “ability to pay”) and reducing the mortgage balance to the “current market value”. If the borrower meets IFI guidelines and the overall scenario makes financial sense, IFI will approach the financial institution with an “all cash” offer to purchase the mortgage (loan). When successful, IFI will proceed to “restructure” the existing loan balance to be in line with the current market value of the home… all the while the borrower remains on title and retains their position of home ownership. Michael Monaco, IFI CEO and financial market innovator, is extremely excited about bringing “Hope back to the Homeowner” and creating a win/win solution for all entities involved.

His “no nonsense” approach to an industry that was once the “cash cow” of states like California where property values soared a few years ago, is a breath of fresh air.  “Homeowners need solutions and so do Banks. They need to get their “non-performing assets” off of the books.  Both sides are satisfied and everyone wins.” says Monaco.

Monaco has been able to take a homeowner’s “nightmare” situation – and turn it from literally upside-down to, well, right side up, if you will.  “Our main focus is to reduce the principal balance of homeowner’s loan – something that is almost unheard of in the era of the “Loan Modifications” buzz.  “While Loan Mods may buy you some extra time, get you a lower interest rate, and even reduce your monthly payments, getting your principal balance reduced is all but impossible” explains Monaco.  “Having a reduced interest rate and payment doesn’t necessarily solve the homeowner’s dilemma of owing substantially more than they home is worth.  If you can’t give them real relief, you’re just begging for a new crisis a year or two from now.  And don’t look for Banks to begin to negotiate directly with Homeowners to reduce their principal balance anytime soon – that would just open up a whole new can of worms as they can’t keep up with current Loan Mod demands” says Monaco.

“We haven’t re-invented the wheel, but we have given many homeowners a real solution for getting them out of the mess they are in.  At the end of the day, I feel good about that” smiles Monaco.

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Investors Finance, Inc., the parent company to IFI's subsidiary, was established in 1960 as a public company based out of Hawaii. Initially IFI was a consumer finance lender and depository with FDIC insurance. In the mid 1990's IFI elected to become a non depository and primary investor for hard money loan transactions acting as an asset holding company for its shareholders.

As the mortgage crisis intensifies, homeowners are slowly being squeezed on all sides. In the past, Banks typically were reluctant to sell mortgage notes for less than their value, and certainly were not interested in negotiating with homeowners.

Today, Banks are more willing than ever to get the property “off of their books”. That is where both homeowners and investors win.
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Tags:Reduce Principal, Loan Restructure, Homr, Investors Finance Inc
Industry:Consumer, Finance, Business
Location:Encinitas - California - United States
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